It is no secret that the prices of homes in the Greater Seattle Area have been on the rise. This has been a pattern throughout several cities across the country, one of which being San Francisco. However, new reports are showing that the market in San Francisco is starting to slow down. Could this be the new pattern?
Seattle and San Francisco may have more in common than you think. Both cities have become home to an abundance of tech companies. Job growth has been the byproduct of tech companies choosing these cities as their central hub, which has led to an influx of people moving to each area.
More people in a city leads to more competition within each specific housing market. The result? Inflation. This has been the recent cause for the market in San Francisco to lose it's steam and cool off.
The inflation in San Francisco led buyers became discouraged with 5% growth in home prices. In Seattle the current rate of increase for home prices is 12.9%, leading many people to think that the housing market here will be next to slow down.
For now, the market in Seattle is as hot as the weather. The strong local economy could lead the market to continue on it's upward journey. However, market prices can only increase so much before there is an inevitable slow down. Time will tell what pattern the Seattle market will follow next.
For more details, see the article on King 5.